Category: Philosophy

Identifying the most promising buy or sell entry points is a different process from defining a trend. Knowing that a trend has formed based on 1-2-3-4 or 1-2-3 patterns does not mean that we should enter the market as soon as the trend starts. In fact, in most cases, we want to wait for a […]

Sun Tzu, one of the greatest Chinese strategists from 2,500 years ago, said in his famous work The Art of War (one of the most widely read books on Wall Street, and a must read book at the West Point – The United States Military Academy): “The good fighters of old first put themselves beyond […]

You’ve entered the market and have a position. The market is moving against your position. Is the current market move a retracement or has the market reversed? If it is a mere retracement, it is a great opportunity to add to your position. If, however, the market has reversed, you want to exit the market […]

AbleTrend trading software provides you protective stops as a defense measure for gains or for limiting losses in trading. Here is an example with today’s ES guidance chart of AbleTrend trading software: Traders typically place a “stop-loss order” at a predetermined dollar level. So if the market moves against the trader’s position, it will automatically […]

This section features the three ways a losing trade can play out following our trade setup. One of my favorite ways of looking at the market is that while we are dealing with uncertainty, there are a finite number of ways that price action can play out. If you understand the win condition and what can go wrong, you will be able to express the trade as it was intended to be when there is cash at risk.

Announcing – AbleTrend: Identifying and Analyzing Market Trends for Trading Success is now in Audio Book by Audible, an amazon company. You may now get this audio book FREE with a Trial Membership with Audible, see details at www.audible.com. The essential concepts revealed in the book are important because they create the lens through which […]

A few times I get asked by someone with the questions similar like the following: “How do you know which time frame to use in advance? I see that in some examples you use 5 minutes, others 60 minutes. In hindsight it is easy to figure out which one to use, but without hindsight how […]

Is the market like a freeway system or like wilderness? If the market is like a freeway system, you can go wherever you want to go with a road map. But the reality is that the market is more like wilderness. The change in the market place is so dynamic, so constant, and the rate […]

Disclaimer

Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.